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U.S. to remain a global leader in the next decade - Frank Holmes
Neils Christensen Friday December 13, 2019 11:28
Editor's Note: 2020 is expected to be another year of significant uncertainty and turmoil. But the question is what assets will emerge the victor when the dust settles from the global trade war, Brexit, recession threats, negative bond yields. It's a showdown of global proportions, so don't miss all our exclusive coverage on how these factors could impact your 2020 investment decisions.
(Kitco News) - The U.S. will soon be closing the book on a momentous decade as the S&P sees its longest bull run in history; it has rallying consistently for the last 10 years. The Index is up 184% since 2010.
The gold market is also attracting new attention on the cusp of the new epoch. Although prices are still down from its record highs hit eight years ago, the precious metal is ending the decade with a gain of 34%.
The questions investors are now asking is: what is in store for markets as the world embarks on a new decade. What are the risks and opportunities to watch for in the next 10 years?
For Kitco News' Showdown 2020 outlook, we are have asked a panel of experts their thoughts on the next decade and how they would invest $100,000 for the next decade.
Part I: U.S. to remain a global leader in the next decade - Frank Holmes
Part II: The next decade looks promising but still hold 30% in gold – Dennis Gartman
Part III: Hold 20% in gold as global economy is an accident waiting to happen - Frank Giustra
Part IV: Buy silver bullion now to prepare for the next decade - Robert Kiyosaki
Part V: Central banks can't do QE forever, hold 25% commodities as inflation hedge for the next decade - USCF
Expert: Frank Holmes
Claim to Fame: CEO and chief investment officer of U.S. Global Investors
How would you invest $100,000 in the next decade?
$10,000 in the U.S. Global GO GOLD and Precious Metal Miners ETF (GOAU).
$40,000 in the Near-Term Tax Free Fund (NEARX).
$50,000 in high-quality stocks that are not only paying dividends but also growing those dividends.
What are the biggest trends you are watching heading into the new decade?
Some of the trends I'll be watching closely are 5G technology, artificial intelligence (AI), GPU chips, blockchain and cryptocurrencies, robotics and environmental, social & governance (ESG).
Meanwhile, the U.S. will continue to be the champion of freedom and opportunity as well as the rule of law across the globe.
What are the biggest threats you see in the next 10 years?
Socialists are brilliant at manipulating the narrative to make their policies sound favorable when in fact they are not. A classic example of this is the Europeans' use of the term "harmonization" to describe the process of making rules and regulations compatible across borders. "Harmonization" sounds like such a pleasant thing—until you realize that it essentially means exporting regulations to other countries and jurisdictions.
Besides that, Putin will continue to be a disruptor and seek to weaken Western institutions by disseminating fake news. Other threats include the expansion of political correctness and the rise of ESG.
How would you describe the outlook for the next 10 years?
I'm very optimistic about the next decade because of America's global leadership. The U.S. follows the rule of law, protects mineral rights and capitalism and creates opportunities for all.
How long do you think the bull run in equities will last?
I will defer my response to Warren Buffett, who once wrote in the Berkshire Hathaway shareholder report that "Predicting rain doesn't count, building an ark does." Calling an end to the bull run is meaningless unless you have a plan to convert thought into action. I believe it's wise and prudent to be prepared for a downturn at all times, whether you predict the "rain" to start tomorrow or a year from now.
Any final comments about what the next decade holds for investors?
It's important to save and invest every single month. It should be as automatic, consistent and pain free as brushing your teeth. After all, what prevents us from getting a mouth full of cavities is not the one or two visits to the dentist every year—it's the everyday, "boring" act of brushing and flossing. Similarly, growing your wealth should be just as incremental and steady.
By Neils Christensen
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nchristensen@kitco.com